Tips for Landlords: Invest in Family Homes
Are you looking to buy a rental property and boost your investment? Investment properties can be exciting and very rewarding if you make the right choice. The average age of a first-time buyer now stands at 32 whilst the average age of a first-time parent is now around 28 years old. Now is the time to invest for families.
If you’re a landlord looking to expand your portfolio with a perfect property for a longer-term tenant, then it’s worth considering a family home.
From above, the average age for a first time buyer is 32 whilst the age of a first time parent is around 28 years old.
The current difficulties presented when looking to secure a mortgage coupled with news that house prices in the UK are likely to fall and stagnate over the next few years means that the rental market is booming.
Added to this, the increased need for flats and houses means that yields are likely to be pushed up in the long-term as demand intensifies.
The Millennial Effect
The largest generation in history, millennials, are now hitting their late 20s and early 30s. What does this fact have to do with investing in multi family homes? Well, this age group is the exact one filling up the renter pool. With rental demand on the rise, millennials are the key demographic for multi family housing in bigger cities.
Millennials were affected most by the 2008 recession. As the consequential debts and other financial complications continue to be an issue to this day, buying a home is simply out of the question for most. We have seen a hot rental growth over the past five years. Yet renting is still the more affordable option for many people.
If you’re a landlord looking to expand your portfolio with a perfect property for a longer-term tenant, then it’s worth considering a family home.
Investing in Family Homes
Education
So what should you look for if you were to invest in a family home? One of the most important factors for families, is access to good schools. Look for a home near a well respected school, check the OFSTED ratings.
Bedroom Sizes
For growing families, the number and the size of bedrooms will also be an important factor. Families often want a minimum of three bedrooms, particularly if they have more than one child.
Garden Area
A garden can be attractive, by having a garden it gives families more space to roam. A garage would be a bonus not just to store cars but to protect garden furniture throughout the winter months.
The garden doesn’t need to be big – in fact, if it’s too big then maintaining fences and tending to the plants could be off putting. But do consider a property with a garden big enough for the family to let the children play, as well as allowing them to entertain friends on the patio.
If a tenant has rented their perfect family home, they’re more likely to stay for longer.
Furnished or Unfurnished?
Before you make your property available to rent, you’ll need to decide whether to let the house as furnished or unfurnished. Personal belongings or items of value should be removed from the property, and be sure to clear out anything that is old and tired, not fit for purpose or an ‘acquired taste’.
A property that offers a blank canvas is often more appealing to prospective tenants. Neutral colours will allow renters to picture themselves living in the space, and will also make the property easy to maintain at each check-in/check-out. And don’t forget the exterior of the house—general sprucing of outdoor spaces will make the property more attractive to renters.
Think about hiring professionals to give your home a deep clean. Professional cleaners will scrub everything from the windows to the oven—they’ll even get down behind radiators.
Make copies of any keys that a tenant may need for windows and doors, or for gas and electricity meters. It’s also a good idea to dig out instruction manuals for the boiler, alarm system, cooker and any white goods, so the tenant has them to hand as soon as they move in.
If you are interested in investing, take a look at our properties for sale, perhaps even compare the ones we have currently on our books for rental. You will see that family homes don't wait around for long, they are the first to go!
Our properties for sale
Our properties to let
Take a look.
If you need any help with investing or any advice then feel free to get in touch. We are available via email or you can message us on our facebook page.
Take care,
The Alexanders Team.